In Singapore, a Limited Liability Partnership is a kind of business entity where two or more partners incorporate a partnership. This partnership protects the co-partner from liabilities of misconduct or negligence of the other partner or a group of partners.
Such an entity has its own several pros and cons:
- The partners are all separate legal entities. So any misconduct or wrongful act by another partner won't affect one another. However, a partner, if found guilty, is liable for his own wrongful doing or misconduct.
- There is no annual return filing required except for IT filing.
- Compliance required from a Limited Liability Partnership is simple when compared to the other private limited companies.
- Change in partners won't affect the LLP.
- Ownership cannot be transferred easily.
- There are no corporate tax benefits.
- You wouldn’t always require the consent of all partners to sign an agreement.
- If you do not have a minimum of 2 partners at all times, the LLP is dissolved.